Infrastructure: Future Investments at Risk

Due to the economic crisis caused by the pandemic, the income of the Costa Rican Social Security Fund was reduced, which puts at risk the financing of 120 infrastructure projects that together total an investment of approximately $1.521 billion.

Monday, November 16, 2020

Prior to the pandemic, Caja Costarricense del Seguro Social (CCSS) plans were to tender and execute over the years 2021-2030, more than a hundred infrastructure projects.

See "Hospital Infrastructure: $340 Million Investment"

According to the authorities of the Costa Rican Social Security Fund (CCSS), in the next ten years, the construction of national and regional hospitals, Ebais, health areas and works to reinforce existing structures could be stopped.

Given the drop in Costa Rican economic activity, which caused a decrease in the CCSS's income, on October 15, 2020 the Board of Directors of the institution unanimously agreed that the infrastructure projects that were projected for the following years could not be tendered, until the Social Security had the financial strength to execute them.

You may be interested in "Hospitals: Commercial Strength of Locations"

Nacion.com review that "... The projects that are stopped will remain in the design, planning and land acquisition stage, but will not be able to enter into the construction process, said Jorge Granados Soto, interim manager of infrastructure and technology of the CCSS."

According to an explanation given by Granados to the CCSS Board of Directors, "... in order to start the bidding process they will have to have an authorization from the Financial Management, it is not that we are going to stop them and they will not be done, but we are going to continue working them until they reach the bidding point, at that time the financial issue would be evaluated."

CCSS directors anticipate that in 2020 and 2021 the institution will report a considerable drop in its income.

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More on this topic

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In the first quarter of 2020, just before the crisis generated by covid-19 began, there were 72,972 formal businesses registered in Costa Rica. In the second quarter the figure fell 6% and by September there was a slight recovery.

Data from the Costa Rican Social Security Fund indicate that between the first and second quarters of the year the number of registered companies fell from 72,972 to 68,946.

Construction: Complicated Present, Uncertain Future

November 2020

Due to the suspension of several projects and the political, economic and fiscal situation in Costa Rica, it is expected that the economic activity of the construction industry will close the year in the red and for 2021 a scenario of much uncertainty is predicted.

According to data from the Central Bank of Costa Rica (BCCR), the economic activity of construction began to report negative year-on-year variations since December 2018.

Nicaragua: Consumption Outlook

April 2020

Once the economy begins to return to normal, as the phases of the pandemic are overcome in the country, it is estimated that the demand for meals outside the home will have decreased by 13%.

Using a demand/income sensitivity model developed by CentralAmericaData's Trade Intelligence Unit, variations in demand by Nicaraguan households for different goods and services can be projected as the most critical phases of the spread of covid-19 are overcome and restrictive measures are lifted in the country.

Tourism in Danger by Covid-19

March 2020

One of the most relevant sectors for the Costa Rican economy is declared in "Total Emergency and State of Calamity", as it is the first time in the "zero" season that total income ceases.

The Board of Directors of the Costa Rican Tourism Institute (ICT) stated that all State institutions, Powers of the Republic, Autonomous and Semi-Autonomous Institutions, as well as Municipalities throughout the country, are required to collaborate in the broadest and most expeditious manner within the framework that the serious reality demands, in order to alleviate the situation of the Private Tourism Sector.

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